Modern Company has four divisions. The budgeted revenues and expenses for each division for 2021 follows: Division

A
B
C
D
Sales
$504,000
$948,000
$960,000
$1,240,000
Cost of goods sold
440,000
930,000
765,000
925,000
Selling & admin costs
96,000
202,500
144,000
210,000
Operating income (loss)
$(32,000)
$(184,500)
$51,000
$105,000

Further analysis of costs reveals the following percentages of variable costs in each division:

A
B
C
D
Cost of goods sold
90%
80%
90%
85%
Selling & admin costs
50%
50%
60%
60%

Closing down any division would result in a savings of 40% of the fixed costs of that division.

Required:
1. Calculate the increase or decrease in operating income if Modern Company closes division B using the below table:
Item

2. What factors should the top management of Modern Company consider before making a decision.

The struter partnership has total partners’ equity of $510,000, which is made up of main, capital, $400,000, and frist, capital, $110,000. the partners share net income and loss in a ratio of 80% to main and 20% to frist. on november 1, adison is admitted to the partnership and given a 15% interest in equity and a 15% share in any income and loss. prepare journal entries to record the admission of adison for a 15% interest in the equity and a 15% share in any income and loss under the following independent assumptions. (1) record the admission of adison with an investment of $90,000 for a 15% interest in the equity and a 15% share in any income and loss. (2) record the admission of adison with an investment of $120,000 for a 15% interest in the equity and a 15% share in any income and loss. (3) record the admission of adison with an investment of $80,000 for a 15% interest in the equity and a 15% share in any income and loss.

Kinc. has provided the following data for the month of may: inventories: beginning ending work in process $ 17,000 $ 12,000 finished goods $ 46,000 $ 50,000 additional information: direct materials $ 57,000 direct labor cost $ 87,000 manufacturing overhead cost incurred $ 63,000 manufacturing overhead cost applied to work in process $ 61,000 any underapplied or overapplied manufacturing overhead is closed out to cost of goods sold. the adjusted cost of goods sold that appears on the income statement for may is:

Which of the following best explains why large companies pay less for goods from wholesalers? a. large companies are able to pay for the goods they purchase in cash. b. large companies are able to increase the efficiency of wholesale production. c. large companies can buy all or most of a wholesaler's stock. d. large companies have better-paid employees who are better negotiators.